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2012 (9) TMI 388 - BOMBAY HIGH COURTNon realization of export proceeds - Contravention of provisions of section 18(2) of FERA - penalty imposed on the firm and on each of the partners - Held that:- The decision of the Appellate Tribunal that the firm has failed to take reasonable steps for realizing the export proceeds is a finding based on facts that the appellants continued to export despite continuous defaults made by the said party in clearing the outstanding and the importer approached R.B.I., after expiry of about five years thus cannot be faulted. However, looking to the facts that the firm had taken some steps to realize export proceeds though may not be adequate, application for extension of time and to write off the export proceeds was pending consideration before the RBI, part payment was recovered by the firm from the importer, thus this is a fit case for accepting the alternate submission of the assessee that the penalty should be restricted to 35% of the penalty imposed and the amount already paid by the firm may be treated in full and final satisfaction of the penal liability. Penalty on each partner - Held that:- The word “firm” or the “firm name” is merely a compendious description of all the partners collectively & as the firm acts through its partners both are to be treated as one - as the authority has already imposed separate penalty on the firm & in the absence of lapse/negligence/bonafides on the part of the partners of the firm individually, imposition of penalty on each of the partners is unjustified.
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